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2022-03-31-accounts

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

Registered number: 12588358 Charity number: 1189865

IDEA FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2 - 5
Trustees' Responsibilities Statement 6
Independent Auditors' Report on the Financial Statements 7 - 10
Statement of Financial Activities 11
Balance Sheet 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 - 24

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees Arjuna Gihan Fernando MBE
Richard William James Parry
Professor Robert Anthony Cryan CBE FIET
Company registered
number
12588358
Charity registered
number
1189865
Registered office
Farrer & Co
66 Lincoln's Inn Fields
London
WC2A 3LH
Independent auditors
Peters Elworthy & Moore
Chartered Accountants
Salisbury House
Station Road
Cambridge
CB1 2LA

Page 1

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the audited financial statements of the Company for the year to 31 March 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

Policies and objectives

The object of the Charity is to advance the education of the public in general, in particular in the subjects: digital technologies; and enterprise and entrepreneurship; in such ways as the charity trustees think fit, including by providing online tools to develop skills in these and related subjects.

The Trustees have reviewed iDEA Foundation’s objectives, activities and achievements for the year and are satisfied that iDEA Foundation has complied with the requirements of public benefit reporting as set out in the Charity Commission’s General Guidance on Public Benefit, to which they have had regard.

Activities undertaken to achieve objectives

iDEA is enabling people to learn, and evidence their achievements with digital badges and Awards for free.

The iDEA team remain focused on growing iDEA’s outreach with socially disadvantaged people in the UK, developing the Gold Award, ensuring the sustainability of the programme, and building employer recognition for iDEA Awards.

iDEA has an extensive reach across the UK, and globally. Today, there are more than 1,300,000 iDEA learners in over 100 countries across every continent. iDEA learners have completed more than 9,500,000 iDEA badges and achieved upwards of 125,000 Awards.

The team has carried out significant research for the Gold Award and started developing the first five Gold level badges which we expect will be made available to learners by the end of the year. In line with the strategy, we are collaborating with a growing group of industry experts and innovative employers to ensure that iDEA learners are provided with a blend of digital and technical, personal, and professional skills directly related to the needs of employers and jobs of the future.

iDEA has continued to develop and maintain the infrastructure of the iDEA.org.uk platform to deliver a scalable, sustainable, secure, compliant platform, which is responsively designed and works on all modern devices, operating systems, and browsers. Platform enhancements include the development and implementation of an API to allow iDEA badges to be surfaced in other environments, single sign-on for a large employer partner and a QR code system for redeeming iDEA participation and experience badges. The team are also working to define and create a new consistent structure to help make badge building and maintenance more efficient and manageable going forwards. Development on a subscription-based analytics dashboard for iDEA organisers is underway and a version has been successfully implemented by one organisation already. Wider release is planned for the beginning of 2023.

Page 2

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

iDEA has partnered with a range of organisations including educational institutions, SMEs, corporates, local authorities, charities, youth groups, and adult education groups who use, implement, advocate for, and collaborate with iDEA. We spoke about our partnership with Intel on stage at Bett in March 2022. This year we also hosted webinars to support organisers and learners on iDEA for the first time.

Achievements and Performance

We have been asking for feedback from iDEA learners and educators. This included running surveys as well as holding some virtual one-to-one and group feedback sessions. Stakeholders from FE colleges, universities, youth groups, JCP networks, adult education, charities, and schools were all engaged.

Almost all educators said that iDEA encouraged independent learning and learners fed back that they like being able to choose what topics to engage with and when. When asked in a recent survey if they would be likely to recommend iDEA to someone they know, 98% responded positively.

The number of learners engaging with the platform has grown substantially; 300,000 new learners joined iDEA.org.uk in the 12-month period and iDEA’s network of engaged partners, employers and facilitators has also grown considerably, leading to increased recognition and adoption of iDEA in education and employment settings.

On the 31st of March 2022, in total:

The project received the following awards and recognitions:

Fundraising activities and income generation

The Charity does not generally fundraise from the public and does not use professional fundraisers. The Charity follows the guidance laid down by the Fundraising Regulator. The trustees are committed to adhering to all of these regulations, following the Institute of Fundraising’s Code of Practice and complying with the key principles embodied in this Code. We work hard to ensure that all fundraising activities are legal, open, honest and respectful.

Financial review

Going concern

The Trustees have reviewed budgets and forecasts prepared by management for the period to 31 March 2024. After making appropriate enquiries, and considering the ongoing impact of COVID-19, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Reserves policy

The Trustees are currently considering a suitable reserves policy for the Charity following its second period of account. At the year end the Charity had total reserves of £555,803 all of which were unrestricted.

Page 3

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Result for the year

The Charity was incorporated in May 2020 to continue the activities of iDEA CIC. On 7 December 2020 the Charity acquired the entire issued share capital of iDEA CIC. During the current year, on 15 April 2021 all remaining trade and assets were transferred from iDEA CIC to Idea Foundation and the CIC ceased activities and was dissolved on 4 Janaury 2022.

During the current period of account the Charity received total income of £560,412 (2021: £621,623). Total income includes grant income of £449,471 (2021: £502,737) of which £45,000 (2021: £262,736) represented the final amount transferred from iDEA CIC under pre-existing agreements. These grants are unrestricted.

The Charity continued to work with partners to develop its programmes and digital badges and income from these activities amounted to £95,556 (2021: £62,600).

Total expenditure in the year amounted to £374,349 (2021: £251,882).

The net income for the year was £186,063 (2021: £369,740).

Principal risks and uncertainties

The Trustees have a policy in place for risk management which is reviewed on an annual basis. The principal risks are considered to be

Risk: Charitable Programmes - Changing external environment for the delivery of programmes, including the continued uncertainty and impact to beneficiaries, partners and grantees caused by the Covid-19 pandemic

Mitigation - Long-term view and flexible approach taken with partners and grantees. During the pandemic additional support was made available to partners and grantees

Risk: Intellectual Property (IP), Brand and Reputation - Damage to brand and reputation due to activities of others

Mitigation - Formal agreements with partners for use of IP, clear statements of copyright ownership and use The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Structure, governance and management

Constitution

iDEA Foundation was registered as a charitable company limited by guarantee on 6 May 2020, number 12588358, and is also registered with the Charity Commission, number 1189865. The Charity is governed by Articles of Association. The Charity is also known as iDEA or Inspiring Digital Enterprise Award.

Methods of appointment or election of Trustees, organisational structure and decision-making policies

The Board of Trustees (“the Board”) is legally responsible for the governance, policy and decision making at the highest level. Under the Articles of Association, Trustees are appointed by the Board. Policies adopted for the induction and training of Trustees

Page 4

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The Board has actively considered the skills base of the existing Board and reviewed Trustee training needs. There is a full induction process in place and a set of annually reviewed policies and procedures. Trustees are also advised of, and encouraged to attend, seminars run by various professional bodies, on topics that may be of interest.

Plans for future periods

Over the next 12 months, the team is focusing on growing iDEA’s outreach with socially disadvantaged people in the UK, ensuring the sustainability of the programme, designing, and developing the Gold Award, and building greater employer recognition for iDEA Awards.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Approved by order of the members of the board of Trustees and signed on their behalf by:

Professor Robert Anthony Cryan CBE FIET

Trustee

Date: 08 December 2022

Page 5

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION (A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Professor Robert Anthony Cryan CBE FIET Trustee Date: 08 December 2022

Page 6

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IDEA FOUNDATION

OPINION

We have audited the financial statements of iDEA Foundation (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 7

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IDEA FOUNDATION (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 8

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IDEA FOUNDATION (CONTINUED)

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we;

Page 9

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IDEA FOUNDATION (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Hewett (Senior Statutory Auditor) for and on behalf of

Peters Elworthy & Moore Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA

Date: 09 December 2022

Page 10

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
5
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
6
TOTAL EXPENDITURE
NET INCOME BEFORE NET LOSSES ON
INVESTMENTS
Net losses on investments
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
2022
£
1,215
559,197
560,412
374,349
374,349
186,063
-
186,063
369,740
186,063
555,803		 Total
funds
2022
£
1,215
559,197
560,412
374,349
374,349
186,063
-
186,063
369,740
186,063
555,803		 Total
funds
2021
£
46
621,577
621,623
251,882
251,882
369,741
(1)
369,740
-
369,740
369,740

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 24 form part of these financial statements.

Page 11

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 12588358

BALANCE SHEET AS AT 31 MARCH 2022

Note
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
14
Unrestricted funds
14
TOTAL FUNDS		 30,807
551,493
582,300
(29,412)		 2022
£
2,915
2,915
552,888
555,803
555,803
-
555,803
555,803		 31,371
366,405
397,776
(28,036)		 2021
£
-
-
369,740
369,740
369,740
-
369,740
369,740

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Professor Robert Anthony Cryan CBE FIET

Trustee Date: 08 December 2022

The notes on pages 14 to 24 form part of these financial statements.

Page 12

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible fixed assets
NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH PROVIDED BY FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
The notes on pages 14 to 24 form part of these financial statements		 2022
£
189,280
(4,192)
(4,192)
-
185,088
366,405
551,493		 2021
£
366,405
-
-
-
366,405
-
366,405

Page 13

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. GENERAL INFORMATION

The Charity is a company limited by guarantee. The Charity is registered in England and Wales and its registered office is Farrer & Co, 66 Lincoln's Inn Fields, London, United Kingdom, WC2A 3LH.

The members of the Charity are the trustees named on page 1. If the Charity is wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

iDEA Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.3 GOING CONCERN

The Trustees have considered budgets and forecasts to 31 March 2024 and as a result have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. As part of their review they have considered the ongoing impact of the Russia-Ukraine war, COVID-19 pandemic and general economic environment. Accordingly, the financial statements are prepared on the going concern basis.

2.4 INCOME

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants, including government grants, are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Page 14

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. ACCOUNTING POLICIES (CONTINUED)

2.5 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Computer equipment - 33%

2.7 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 15

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. ACCOUNTING POLICIES (CONTINUED)

2.9 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.10 FINANCIAL INSTRUMENTS

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 PENSIONS

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Page 16

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2022
£
Donations
1,215
TOTAL 2021
46		 Total
funds
2022
£
1,215
46		 Total
funds
2021
£
46

5. INCOME FROM CHARITABLE ACTIVITIES

Grant income
Grant income - Innovate UK
Badge development income
IT development income
Subscription income
TOTAL 2021		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
-
449,471
-
-
-
97,426
-
550
-
11,750
-
559,197
50,240
571,337		 Total
funds
2022
£
449,471
-
97,426
550
11,750
559,197
621,577		 Total
funds
2021
£
502,737
50,240
62,600
6,000
-
621,577

Page 17

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Digital activities
TOTAL 2021		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
-
374,349
50,240
201,642		 Total
2022
£
374,349
251,882		 Total
2021
£
251,882

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Digital activities
TOTAL 2021		 Activities
undertaken
directly
2022
£
348,573
233,436		 Support
costs
2022
£
25,776
18,446		 Total
funds
2022
£
374,349
251,882		 Total
funds
2021
£
251,882

Page 18

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF DIRECT COSTS

Badge development costs
Staff costs
Other staff costs
Consultancy fees
IT, platform maintenance and software costs
Certificate fees
TOTAL 2021
ANALYSIS OF SUPPORT COSTS
Marketing
Legal & professional fees
Audit & accountancy fees
Other general expenses
TOTAL 2021		 Digital
activities
2022
£
77,330
231,079
1,525
4,911
33,113
615
348,573
233,436
Digital
activities
2022
£
902
726
7,527
16,621
25,776
18,446		 Total
funds
2022
£
77,330
231,079
1,525
4,911
33,113
615
348,573
233,436
Total
funds
2022
£
902
726
7,527
16,621
25,776
18,446		 Total
funds
2021
£
27,800
108,278
936
63,889
24,505
8,028
233,436
Total
funds
2021
£
4,063
659
11,773
1,951
18,446

Page 19

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8. AUDITORS' REMUNERATION

2022 2021
£ £
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 5,350 5,000
Fees payable to the Company's auditor in respect of:
Accountancy fees 2,150 2,000
Virtual Finance Office and Payroll 10,027 5,432

9. STAFF COSTS

Wages and salaries
Social security costs
Pension costs		 2022
£
203,984
20,163
6,932
231,079		 2021
£
92,458
11,042
4,778
108,278

The average number of persons employed by the Company during the year was as follows:

2022 2021
No. No.
Administrative staff 3 2

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022 2021
No. No.
In the band £70,001 - £80,000 2 -

The Trustees consider themselves to be the key management personnel, none of whom are remunerated.

10. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).

Page 20

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. TANGIBLE FIXED ASSETS

COST OR VALUATION
Additions
Disposals
At 31 March 2022
DEPRECIATION
Charge for the year
On disposals
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021
12.
DEBTORS
DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
Grants receivable		 2022
£
13,500
7,196
10,111
-
30,807		 Computer
equipment
£
4,192
(561)
3,631
950
(234)
716
2,915
-
2021
£
-
2,586
4,096
24,689
31,371

Page 21

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals		 2022
£
8,298
-
8,250
-
12,864
29,412		 2021
£
954
10,868
5,507
955
9,752
28,036

14. STATEMENT OF FUNDS STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
General
STATEMENT OF FUNDS - PRIOR YEAR
UNRESTRICTED FUNDS
General
RESTRICTED FUNDS
Innovate UK
TOTAL OF FUNDS		 Balance at 1
April 2021
£
369,740
Income
£
571,383
50,240
621,623		 Income
£
560,412
Expenditure
£
(201,642)
(50,240)
(251,882)		 Expenditure
£
(374,349)
Gains/
(Losses)
£
(1)
-
(1)		 Balance at
31 March
2022
£
555,803
Balance at
31 March
2021
£
369,740
-
369,740

Page 22

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR
Unrestricted Total
funds funds
2022 2022
£ £
Tangible fixed assets
2,915		 2,915
Current assets
582,300		 582,300
Creditors due within one year
(29,412)		 (29,412)
TOTAL
555,803		 555,803
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Unrestricted Total
funds funds
2021 2021
£ £
Current assets
397,776		 397,776
Creditors due within one year
(28,036)		 (28,036)
TOTAL
369,740		 369,740
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
16. ACTIVITIES
2022 2021
£ £
Net income for the year (as per Statement of Financial Activities)
186,063		 369,740
ADJUSTMENTS FOR:
Depreciation charges
950		 -
Loss on disposal of fixed assets
327		 -
Loss on investments
-		 1
Decrease/(increase) in debtors
5,174		 (31,371)
Increase/(decrease) in creditors
(3,234)		 28,035
NET CASH PROVIDED BY OPERATING ACTIVITIES
189,280		 366,405

Page 23

DocuSign Envelope ID: AD873D71-24B7-41A6-B806-6A10F3C40F52

IDEA FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
TOTAL CASH AND CASH EQUIVALENTS		 2022
£
551,493
551,493		 2021
£
366,405
366,405

18. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand At 1 April
2021
£
366,405
366,405		 Cash flows
£
185,088
185,088		 At 31 March
2022
£
551,493
551,493

19. PENSION COMMITMENTS

The Charity operates a defined contribution pension scheme for the benefit of employees. The assets of the scheme are administered by trustees of the fund independent to those of the Charity.

During the period contributions totalled £6,932 (2021 - £4,778). The balance outstanding as at 31 March 2022 was £nil (2021 - £955).

20. RELATED PARTY TRANSACTIONS

The Company has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Company at 31 March 2022.

Page 24